WASHINGTON (Published by the Internal Revenue Service) — The IRS reminded employers recently to carefully choose their payroll service providers following continuing concerns that some disreputable organizations can fail to deposit employment taxes, leaving businesses vulnerable to unpaid bills.
Many employers outsource their payroll and related tax duties to third parties. This streamlines business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities. Most third-party payroll services do a good job helping small businesses meet their deadlines and payroll obligations.
Like employers who handle their own payroll duties, employers who outsource payroll are in most instances still legally responsible for any and all payroll taxes due. This includes any federal income taxes withheld as well as both the employer and employee shares of Social Security and Medicare taxes. This is true even if the employer forwards tax amounts to the third party to make the required deposits or payments.
A business doing everything else right can suddenly find its future in doubt if it falls victim to an unscrupulous third party that fails to make the required payroll and withholding deposits. This is especially important right now as businesses face unique challenges because of the pandemic.
Employers should remember to watch out and do due diligence to help safeguard themselves – and their employees − from a payroll service provider failing to do what the law requires.
TRP Sumner offers our clients in-house, dedicated payroll services. Heather Godwin, leader of our Preferred Pay division and Client Accounting Services department, commented about our services by saying “We have been providing payroll services to our clients for over 15 years and have Certified Payroll Specialists on staff to answer any payroll related questions you may have to help you avoid costly payroll mistakes.”
If you have questions or concerns about your business payroll, give us a call at one of our three locations in Fayetteville and Dunn, NC. You may also go to our website at www.trpsumner.com and click on the Payroll Services tab to learn more about this service and other ways that TRP Sumner can help you beyond the tax return.